Loving Outlet Shopping - Value Retail News

WITH THIS IN MIND
Shared outlet information
would benefit everyone
By Neil Chapman
CEO
Chameleon Retail
Consultancy
Sharing is good — how many
times have I told that to my
children?
So why is our industry in the UK
so reluctant to share core data? Are
we hiding behind our traditional
British reserve or are
there other, more disconcerting
reasons?
Outlet centers of
sorts existed in the U.K.
and Europe before the
arrival of the U.S.-style
strip and village developments,
which gave a
certain unified shape
to the outlet industry
here. Interestingly
enough, these new
two developers, in earnings reports
provided by Chelsea and Tanger
Factory Outlet Centers because they
are publicly held companies.
Our outlet industry in Europe and
the U.K. is swamped with data.
On the plus side, turnover rents
delivered from the individual shops to
center management on a weekly basis
have been instrumental in establishing
and building some genuinely
close relationships
between developers,
retailers,
managers, property
companies and
institutions. This
reporting has fostered
an increased
understanding of
the shopping-center
business and
facilitated greater
c o m m u n i c a t i o n
outlet schemes were
on a more regular
driven by U.S. develop-
Neil Chapman basis.
ers, whom we regard as being more More of this type of information
open in sharing statistics on the sharing, especially regarding mar-
performance of their centres. keting and other research, would
But are they? Not always. be key tools to delivering what the
I understand that a few years ago, customer wants and driving sales
five outlet developers in the U.S. forward to the mutual benefit of
pooled their center-sales informa- both owner and retailer.
tion in a quarterly category-by-cat- Some data has been collated on UK
egory report. This information was commercial property by Investment
extremely useful, not only to other Property Databank since 1985 to
developers and financial institu- provide a reliable index of commertions,
but also to the entire retail cial property returns.
community. However, because But does this data really tell us
the largest U.S. outlet developer what the footfall is at a center or
– Chelsea Property Group – had which shops are visited or what their
always declined to participate, the conversion rate is? What is the sales
rest eventually made the same deci- density for ladies wear and are the
sion and the index died. Outlet- catering units satisfying their cuscenter
sales, occupancy, rents and tomers? Even if we did share our data,
other data is now available from only we first would have to standardize
26 InternatIOnal Outlet JOurnal Fall 2009
that information: Should we calculate
using gross or net sales area? Do
customers visit the centers for the
purpose of shopping, or are they visiting
only after they’ve gone to a major
tourist destination on the doorstep?
Outlets are still the Cinderella sector
of the retail industry and perhaps
the plan is to keep the mystique.
Without sharing vital information on
a cross-border and inter-company
basis, the industry will possibly
remain in the shadows, even if we all
truly believe that outlets are counter-cyclical
to a poor economy.
Operators are proud to tell us how
well they are doing – even in this
recession – but can they prove it to
anyone? c
Neil Chapman, CEO of Chameleon
Retail Consultancy, has been in the outlet
sector since 1996. He has worked
on McarthurGlen schemes in Swindon,
Cheshire Oaks, Mansfield and York, as
well as Gunwharf Quays in Portsmouth,
and more recently, Batavia Stad,
Designer Outlet Berlin and leoville
Premium Outlet in austria.
2009/2010
iOJ Calendar
ICSC european Factory
Outlets Conference
14 - 15 October, Starhotel Rosa,
Milan
Mapic
18-20 November, Palais Des
Festivals, Cannes
Winter 2010 IOJ
November 11, ad space deadline
Vrn Spring Outlet Deal Making
25 - 26 March, Rennissance Orlando
Resort at Seaworld, Orlando, Florida